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Meta Platforms Announces Subscription Service for Instagram
Meta Platforms Inc. (NASDAQ: FB) saw its shares rise 2.2% during trading on Wednesday afternoon after announcing a new subscription service on Instagram aimed at monetizing its platform. The announcement was made by CEO Mark Zuckerberg on Facebook.
The “subscriptions on Instagram” service will allow popular creators to sell exclusive access to content, such as Lives and Stories, providing them with a new revenue stream. This move is seen as a method for Meta to diversify its income as it collects a portion of these subscription earnings.
Currently, Meta’s stock is trading at 24 times trailing earnings, with an anticipated long-term earnings growth rate of 21%. The addition of subscription revenue may enhance the company’s growth prospects, making the stock more attractive to investors.
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